The market's other major indicators were also higher. The Dow Jones industrial average was up 31.21, or 0.3 percent, at 10,181.76, having gained 129 points so far in 2002. The Standard & Poor's 500 index advanced 3.09, or 0.3 percent, to 1,163.80.

The market's gains can also be attributed to a seasonal occurrence called the January effect, when investors and money managers load up on stocks after having sold off shares for year-end tax purposes.

"There is an unnatural selling influence in December, which tend to bounce back after the tax-loss selling is over," Hogan said. "Everyone has a clean slate, and so there is a new pile of money coming into the market."

The tech sector benefitted from bullish comments made Tuesday by executives from Oracle and Cisco, both of which were the heaviest-traded Nasdaq issues Wednesday. Oracle rose $1.18 to $16.93 after chief financial officer Jeff Henley told attendees of a Morgan Stanley conference Tuesday he was optimistic about 2002 as business conditions were improving.

Cisco advanced 42 cents to $21.37 after chief executive John Chambers, speaking at a Salomon Smith Barney conference, said he expects the company to dramatically increase market share in its fiscal second quarter.

Many investors are betting that the tech sector will lead the market higher this year, and have given the sector a big boost so far this year.

"It was great to get decent news from Cisco and Oracle. To get some support for the technology side is very encouraging," said Thomas F. Lydon Jr., president of Global Trends Investments in Newport Beach, Calif. "If companies can project decent earnings in the future, then the more and more Wall Street can say, `The worst is behind us, and we are back in the growth mode.'"

Citigroup rose 66 cents to $50.16 after Lehman Brothers reiterated its "strong buy" rating and said the financial services company's exposure to Argentina's financial crisis is less than the market previously believed.

But Gateway fell 76 cents to $6.93 after sliding 25 percent Tuesday when it issued a revenue warning and Moody's Investors Service downgraded its debt rating to junk status. And Wal-Mart stumbled $1.21 to $56.63 after JP Morgan lowered its rating on the retailer's stock.

Advancing issues outnumbered decliners 3 to 2 on the New York Stock Exchange. Volume was 1.09 billion shares, ahead of the 954.03 million at the same point Tuesday.

The Russell 2000 index, which tracks the performance of smaller company stocks, rose 2.37, or 0.5 percent, to 500.27.